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3 Overlooked Industries That Could Outperform the Market

  • By finding stocks in overlooked industries, you can often discover opportunities for investment.
  • Airlines are making a comeback after a couple of tough years, making this the ideal time to strike.
  • Despite the potential for high returns, the basic materials sector is one of the most overlooked industries in the stock market.
  • Credit bureaus are often overlooked but they’re valuable pieces of the financial economy.
overlooked industries - 3 Overlooked Industries That Could Outperform the Market

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With the stock market becoming more volatile in recent years, investors are increasingly looking for new opportunities to invest their money. One such opportunity is investing in overlooked industries that have the potential to generate high returns.

These overlooked industries often have solid fundamentals and a forward-looking approach that can help investors maximize their returns.

Investing in these overlooked industries can greatly diversify your portfolio and create a long-term investment strategy. By researching these industries and understanding their potential, investors can make informed decisions about where to invest their money.

With the right research and analysis, investors can find undervalued companies in overlooked industries with strong fundamentals that could provide them with substantial returns in the future.


stock image of the interior of a passenger aircraft. Airline stocks are up again.
Source: Shutterstock

Investing in airline stocks is a great way to diversify your portfolio, with several top-tier companies worth considering.

These include well-known names as well as lesser-known but still promising companies. Investing in these stocks can be a great way to take advantage of the lucrative aviation industry.

The effects of the pandemic on the aviation industry have been felt worldwide, with airlines facing unprecedented challenges in revenue, operations, and customer service.

However, things are now perking up for the airline sector. People are traveling again in mass numbers; TSA numbers will vouch for this. This is great news for the airline sector.

The surge in demand is being felt throughout the sector, so it is a great time to invest in airlines. American Airlines (NASDAQ:AAL) is one of the sector’s stars.

On the back of high demand during the holiday season, American Airlines reported fourth-quarter profit that topped estimates. The legacy carrier saw revenue increase by nearly 17% compared to 2019, before the Covid pandemic drastically reduced travel.

American Airlines showed robust performance despite running at 6.1% lower capacity, evidencing that passengers are willing to pay higher fares for their tickets.

Delta Air Lines (NYSE:DAL) is another strong performer in the airline sector. One of the world’s oldest airlines in operation, it reported impressive financial results despite mass weather-related cancellations during the holiday

In addition, Delta is investing in more fuel-efficient jets, ultimately improving its financial performance and resulting in long-term benefits. Deliveries are expected to begin in 2025.

Basic Materials Sector

Image of a handful of commodities, such as gold, oil, silver, copper, corn, and wheat, best basic materials stocks
Source: Shutterstock

For investors looking to make a contrarian play in the stock market, now is the time to invest in the basic materials sector.

With global economic uncertainty and macroeconomic trends pointing towards a recovery, now is an opportune time for investors to take advantage of the current market conditions and invest in this sector.

The basic materials sector comprises companies that produce raw materials such as metals, minerals, chemicals, and energy. The pandemic hit this sector hard, but it is now showing signs of recovery.

As governments worldwide begin to relax restrictions, demand for these raw materials is expected to increase significantly. This presents a great opportunity for investors looking to capitalize on this trend and make long-term investments in this sector.

The star performer within the industry is the oil and gas sector. It has seen the most growth for two consecutive years due to the impact of both global economic recovery post-pandemic and the Russia-Ukraine war in oil markets.

Oil companies have prioritized dividends and stock repurchases to appeal to shareholders worried about overproduction. This effective move has served to maintain price momentum. Investors have benefited financially as a result of these decisions.

There is a risk of a global recession which could lead to reduced energy demand. There’s also the danger of oil prices staying too high for a long, resulting in decreased demand.

Despite this, the oil and gas industry offers plenty of attractive stocks for investors to diversify their portfolios. For example, Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM), and Kinder Morgan (NYSE:KMI) are among the best companies you will find in this sector. All are companies with a strong dividend history and robust operating models.

Credit Bureaus

Man calculating finances on calculator. Finance. Finance stocks.
Source: wutzkohphoto / Shutterstock

Investing in credit-scoring companies is a safe but often overlooked investment opportunity.

Credit scoring companies are responsible for assessing the creditworthiness of individuals and businesses, enabling lenders to make informed decisions about lending and borrowing.

Despite this important role in the economy, they have been largely overlooked by investors when it comes to stock market investments.

Investing in credit-scoring companies can provide investors with a reliable source of income and exposure to an industry that is not often given enough attention.

Credit score has become an integral part of the financial services sector. It is widely used by lenders, investors, and consumers, giving it credibility. Lenders trust the credit scoring system to make important decisions, whereas consumers use it to understand their financial standing.

The powerful network effects of this industry give it a monopolistic edge. In the U.S., there are three major credit bureaus – Equifax (NYSE:EFX), Experian (OTCMKTS:EXPGF), and TransUnion (NYSE:TRU) – responsible for providing credit reports.

Investing in credit bureaus is not only profitable but also relatively low-risk. Since these companies have been around for decades, they are well-established and have a proven track record of success.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Faizan Farooque is a contributing author for and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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